There may be more free TV channels than ever, but despite this many people still opt to pay extra for their favourite shows and channels.

In a bid to keep up with competition from the likes of Netflix and Virgin Media, broadcaster Sky has unveiled its 'most significant' new product since it rolled out its HD packages a decade ago.

Dubbed Sky Q, the 2TB set-top box lets people watch five screens at once, is fitted with 12 tuners and comes with a 'plug and play box' called Sky Q Mini.

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In a bid to keep up with the likes of Netflix and Virgin Media, broadcaster Sky has unveiled its 'most significant' new product since it rolled out its HD packages a decade ago. The Sky Q, 2TB set-top box (pictured) lets people watch five screens at once, is fitted with 12 tuners and comes with a 'plug and play box' Sky Q Mini

The Sky Q Mini box also doubles up as a Wi-Fi hotspot when combined with Sky broadband and both new boxes will be available in 'early 2016'.

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Before the event, the firm had teased SkyQ with the tagline; 'It's time to set your TV free'.

SKY Q and SKY Q MINI BOXES

The 2TB Sky Q box lets people watch five screens at once, is fitted with 12 tuners and comes with a 'plug and play box' Sky Q Mini.

The Sky Q Mini box also doubles up as a Wi-Fi hotspot.

The new service blends live and on-demand TV - which Sky calls 'fluid viewing.'

Elsewhere, the service brings Ultra HD 4K video quality to Sky TV channels for the first time, including sports and movies.

There is also a new remote control that features a touchpad and voice control.

The service will launch in 'early 2016' but prices have not yet been announced.

It appears the aim is to entice current customers to upgrade their HD packages as well as tempt people away from their competitors' offerings.

The new service, which is separate to Sky's satellite offering and Now TV on-demand service, blends live and on-demand TV - which Sky calls 'fluid viewing.'

Elsewhere, the service brings Ultra HD 4K video quality to Sky TV channels for the first time, including sports and movies.

It also offers intelligent recommendations features across live and on-demand shows, which is similar to what is already offered by Netflix and Virgin Media.

The menus and screens on the service's interface resemble Apple TV, with carousels of images.

And its Bluetooth-enabled remote control, with a touchpad and built-in voice controls, also resembles Apple's latest gadget.

Other features of the interface include My Q, to help people find shows they love, and Q Sync that syncs recordings from the box to a mobile device.

The new service, which is separate to Sky's satellite offering and Now TV on-demand service, blends live and on-demand TV - which Sky calls 'fluid viewing.' The new offering (pictured) resembles Apple TV, with carousels of images and lets people 'dig' into their favourite topics

Sky is also launching a new Bluetooth remote control (pictured), with a touchpad and voice controls, which also resembles Apple's latest gadget. There is even a button on the front of the hub that makes the remote 'sing' in case it's lost down the side of the sofa

MAILONLINE'S FIRST IMPRESSIONS

MailOnline's Samantha Lewis said:

'Sky's new product is bold and ambitious.

'The customer and their viewing habits have clearly been at the heart of the development process.

'The design is sleek and would fit neatly into your home slimming the current hub box by half.

'Its major selling point is the idea you can pause live TV and take it from the sofa to the bedroom or even to the car via your tablet.

'This makes it ideal for families or anyone who loves Sky TV.'

Like Sky Go, the service will lets users stream and record content around the home.

Up to four shows can be recorded at once and programmes can be paused on one device and played on another seamlessly using the Sky Q app and Q Play.

However all these features will likely come at a cost and the firm has not released details about the price yet.

Sky boss Jeremy Darroch said: 'Our ambition was to reinvent TV for the way people live their lives today.'

Andrew Olson, Director of New Products, added Sky Q is: 'TV you love across all the screens in your lives'

'You can take take the most personal moments you love on TV and watch them anywhere, anytime.'

The Sky Q Mini lets people watch shows and recordings from the main Sky Q box through the home, without the need for more satellite cables. When combined with Sky Broadband it also boosts Wi-Fi signal because the box acts as an extra hotspot

Up to four shows can be recorded at one time using Sky Q and programmes can be paused on one device and played on another seamlessly. Sky boss Jeremy Darroch said: 'Our ambition was to reinvent TV for the way people live their lives today'